IN its first tie-up with American Express, United Overseas Bank is offering a credit card that yields more rewards over time.

The UOB PRVI (for privilege) American Express card pays a bonus on the UNI$ that is earned from simply using the card. But to earn the bonus - which starts at 10 per cent and rises 10 percentage points each subsequent year to a maximum of 50 per cent - the cardholder must charge at least $12,000 a year to the card.

Every multiple of $12,000 is worth another 10 percentage points. So if the first-year annual charge is say at least $24,000, then the bonus in the second year is 20 per cent.

The bonus is all the more attractive because cardholders earn two UNI$, instead of the normal one, on their billings.

UOB said at the launch of the card that the UOB PRVI American Express card would account for 20 per cent of its total credit card billing in three years. It expects to draw 100,000 card members in the first year.

To qualify, the applicant must have an annual income of at least $50,000. UOB offers a fee waiver for the first year, and an automatic waiver for subsequent years as long as the annual charge is at least $12,000.

Gan Ai Im, head of cards and payment products, said that the idea to reward cardholder for their loyalty came from research and feedback from the bank's current cardholders.

She said that while credit card benefits and privileges are highly valued, cardmembers also expect to be rewarded for their loyalty. 'Therefore, UOB will be the first in Singapore to reward customers for their loyalty - by giving them a credit card where the reward bonus increases over time.'

Other benefits for card members include travel assistance from American Express and rebates on everyday essentials, such as a 3 per cent rebate for every $100 spent at supermarkets such as Jasons and Cold Storage.

This article was first published in The Business Times.